Over the last three reporting periods, the amount that Apple's total net sales has exceeded total cost of sales has a. increased b. decreased C. stayed the same d. cannot be determined QUESTION 2 Does Apple disclose its estimate of uncollectible accounts receivable on its balance sheer? a. Y(s b. No QUESTION 3 Use the following formula to calculate Apple's accounts receivable tumover ratio at the last two baiance sheet dates: Account receivable turnover ratio = Total net sales / Accounts receivable, net (Round answer to two decimal piaces.) Select the correct answer below. a. The company collected accounts receivable faster in the most recent reporting period than the prior reporting period. b. The company collected accounts receivable slower in the most recent reporting period than the prior feporting period c. The company collected accounts receivable at the same rate as in the prior reporting period. At the most recont balance sheet date, the historical cost of Ehe compony/s property, plant and equipment wis (ir thi? a. \$22,126: b. 5114,457 . c. $72,340 d. 5217,350. QUESTION 5 At the most recent balance shoet date, the book value of Apple's property, plant and equipment was (in mabons) a. 542,117 . b. $72,340. c. 5114,457 d. 322,120 QUESTION 6 a. 50,500 6.5114 .457 c. 542,117 d. 572.340 As a proporton of lotal assets, Apple's property, plant and equpment (reet) over the last two reporing periods has (round io nearest whole percent): a, increased b. decreatsed c. stayed the same d. earnot be determined QUESTION 8 Acoles deprecation method resuats in book ralue being reported on the company's batance sheel edety in an asset's wistd lfe than compared to the acowerited depreclaton methode a. mere b. loss c. the same QutsTION 9 Aggles depreolsion theched rewits in Everncidion methots a. the whe Biese cise trise In the most recent reporting porlod, the amount of cash paid by Apple for property. plant and equipment was (in milions)? a. 510,708 . h. 306. c. $2.677. d. $22,354 QUESTION 11 Caloulate Apple's tetum on astets rato (oet hoone I total assets) for the last bwo reporting periods. Rourd to bue nesest whole percent- Based on the company's refum on assets ratio, the corpany's management: a. used its assets more ellicienty to generale eaming b. used its astets less efficiendy to gererole earnings. c. uned its assets as erticlerity to generate earringn. d. none of the above QUESTION 12 Appie incteased which accoot wben at originaliy havaed thater of its stock forcast? 4. Fotained eamings b. Shareholders:equly c. Common atock a. Rerrenues At the moet recent batince sheet date, Apple's sharchader daims to the compony's acsots totaled (in mitions): a. 53.06d b. 50.849. c. $50.672 d. 5352,756 QUESTION 14 At the mest recent balunce sheot date, Apple's paid th caplad lotaled: a. 530,672 b. 504,49 c. 5052,755 d 53.068 QUESTION 15 Apple w undhatrbuled earnings at the moat rocort Bolance theet dite was (n mitons) a. 5352.755 t. 32000) ciser2 4523.046 The amount of dividends declared by Apple during the most recent reporting period was $14,793. True False QUESTION 17 Did Apple pay cash to repurchase any of its common stock shares during the most recent reporting period? a. Yes b. No QUESTION 18 Which ol Apple's financial statements is not accrual-based? a. Income statement b. Balance sheet c. Statement of shareholders' equity d. Statement of cash flows QUESTION 19 For the most recent reporting period. Apple's largest source of cash was from: 3. Investing activities b. Operating activities c. Financing activalies Apple's cash-based net income for the most recent reporting period was (in millions): a. $122,151. b. $99,803. c. $23,646. d. $394,328. Apple lne. Apple Inc. CONSOUDATED BALANCE SHEETS (In millions, exceptnumber of shares which are reflected in thousandg and par value) Apple fnc. CONSOUDATED STATEMENTS OF SHAAEHOLDEAS EOUITV CONSOUDATED STATEMENTS OF CASH FLOWS (In milions) Restricted Marketable Socurtties The Company conoiders marketable securities to be rostricted when withdrawal or general use is legally restricted. The Compeny reports restricted marketable socurities as current or non-current markotable securitice in the Consolidated Belance Sheots based on the classilication of the undertying securities. Property, Plant and Equipment Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimaled useful lives of the assete. Which for buildings it the shorter of 40 years or the remaining life of the bulding: between one and five years for machinery and equipment, including manulacturing equipment; and the shorter of the lease term or useful life for leasehold improvements. Capitalized costs rolated to intemal-use software are amortized on a straight-line basis over the estimated usotul livos of the assets, which range from five to seven yoars. Depreciation and amortiation expense on property, plant and equipment was \$8.7 bilion, 50.5 billion and 59.7 billion during 20e2, 2021 and 2020 , rospectively. Derivative Instruments and Hedging Al derivative instrumente are recorded in the Consolodated Balance Sheet at fair value. The acoounting treatment for derivative gains and losoes is based on intended use and hedge designation. Guine and losses arking from amounts that are incluched in the assessment of cash flow hedpe elfectiveness are initialy deforred In acoumulated other comprehensive income/loss) ("AOCF) and subecquently rechasifed into eamingr when the heobed transaction aftects earrings, and in the same line ilem in the Consoldated Statements of Operations For options designaled as cash flow hedges, the Company exdudes Eime value from the assesament of hedon afloctoveness and recogrixee it on a straight-tine basit over the lite of the hedge in the Consoldated Statements of Operations line item to which the hodge relates Changos in the far value of amounts exoluded trom the assessment of hedge effectiveness are recognised in other. comprehenetve incomev(loss) ("OCl'). Gainite and losses arising from amounts that are included in the assossment of hair value hedge eflectiveneas are recognited in the Consoldated Statomente of Operations line lem to which the hedge relates along with oftietsing losbes and gains related to the change in value of the hedged item. For foreign exchange forward contracts designated as fair value hedgea, the Company. molubes the forward carry component from the assessment of hedge eflectiveness and rocognizee if in other income/texpense. net ('OL5 ?) on a straight-lhe basis over the Mte of the hedge. Changes in the tar value of ameuns excluded from the assesement of hedge efloctiveness are recognized in OCl Guins and lossee arising from changes in the fair values of dorivative instruments that are not deaigaled as accounting hedges. are rocogrired in the Consobdated Statements of Operations lne liems to which the denvalive ingrumanta retale The Company presents deivative assets and labdities at their gross tair values in the Consoldatod lalance Sheuts. The Flover. Fair Value Meesurements The tair values of the Conpamy's money manket tunds and certain makptabie equiy securties are based on quoled prices in active markots for identical asseth. The valuation tocthigues used to measure the tait value of the Coerpampis debe inulriments and al other financia insirumenth, which generally have countepartien with high credt catings, are based on quicted market prices or modetidiven valaatont using signticant irputs derived trom or corroborated by cbservatle maiket dada. income faxes oweded by the US. Tax Cuts and Jobs Act of 2017 (the 'Act) Leases The Comiqumicombines and acceunts tor iakse and nonlaste compronents as a anole inase componert for inases of corporaie. data periter and retail lacities. The disount rater rilaged is the Companys lease labelies are gereraly based on emtenates of Other incomert zppente), Met The followhe table shwos the detad of pust lor 2002, 2021 and 2000 (in milcra). Hole 5 - Income Taxes Provision for lncome Tases and thective Tan fate The provioun for income tanew for 2022 , 2021 and 2020 , conseted of the folkwing (n mavors). Note 7-Debt Commercial Paper and Aepurchabe Agreements The Company lasues uneecured ohort-term promissory notes (Commercial Paper') pursuant to a corrimercial poper program. The Company uses net proceeds from the commercial peper program for general corporute pumposes, including dividendh and bhare repurchasen. As of September 24, 2022 and September 25 , 2021, the Company had $10.0 billon and 56.0 billon of Commercial Paper outstanding, respectively, with maturities generally less than nine montha. The weighted-itverage interest rate of the Company's Commercial Paper was 2.31\% and 0.06% as of September 24, 2022, and September 25, 2021, respectivoly. The following table provides a summary of cash flows associated with the issuance and maturilen of Commercial Papor for 2022,2021 and 2000 (n millionsli In 2080, the Company entered into agreements to sel certain of tha marketable securities whth in promige to mpurchase the nocucities, the Company accounted lor its Alepos as collateralized borrowings. The Company ertarud irto $52 billon of Aepoe during 2020, all of which had been setiled as of Septerber 26, 20e0 Term Debt The Company has outstanding foxed-rate notes with varying maturites (colectivoly the Noted? The Noles are achior uneecurod. obligatione and interest is peyable in arrears. The following bable provides a sunmary of the Compary's twen dobt as of September 24, 2022 and September 25, 2021: curency owaph to eflectively convert these notes lo US dollar-derominazed notes Over the last three reporting periods, the amount that Apple's total net sales has exceeded total cost of sales has a. increased b. decreased C. stayed the same d. cannot be determined QUESTION 2 Does Apple disclose its estimate of uncollectible accounts receivable on its balance sheer? a. Y(s b. No QUESTION 3 Use the following formula to calculate Apple's accounts receivable tumover ratio at the last two baiance sheet dates: Account receivable turnover ratio = Total net sales / Accounts receivable, net (Round answer to two decimal piaces.) Select the correct answer below. a. The company collected accounts receivable faster in the most recent reporting period than the prior reporting period. b. The company collected accounts receivable slower in the most recent reporting period than the prior feporting period c. The company collected accounts receivable at the same rate as in the prior reporting period. At the most recont balance sheet date, the historical cost of Ehe compony/s property, plant and equipment wis (ir thi? a. \$22,126: b. 5114,457 . c. $72,340 d. 5217,350. QUESTION 5 At the most recent balance shoet date, the book value of Apple's property, plant and equipment was (in mabons) a. 542,117 . b. $72,340. c. 5114,457 d. 322,120 QUESTION 6 a. 50,500 6.5114 .457 c. 542,117 d. 572.340 As a proporton of lotal assets, Apple's property, plant and equpment (reet) over the last two reporing periods has (round io nearest whole percent): a, increased b. decreatsed c. stayed the same d. earnot be determined QUESTION 8 Acoles deprecation method resuats in book ralue being reported on the company's batance sheel edety in an asset's wistd lfe than compared to the acowerited depreclaton methode a. mere b. loss c. the same QutsTION 9 Aggles depreolsion theched rewits in Everncidion methots a. the whe Biese cise trise In the most recent reporting porlod, the amount of cash paid by Apple for property. plant and equipment was (in milions)? a. 510,708 . h. 306. c. $2.677. d. $22,354 QUESTION 11 Caloulate Apple's tetum on astets rato (oet hoone I total assets) for the last bwo reporting periods. Rourd to bue nesest whole percent- Based on the company's refum on assets ratio, the corpany's management: a. used its assets more ellicienty to generale eaming b. used its astets less efficiendy to gererole earnings. c. uned its assets as erticlerity to generate earringn. d. none of the above QUESTION 12 Appie incteased which accoot wben at originaliy havaed thater of its stock forcast? 4. Fotained eamings b. Shareholders:equly c. Common atock a. Rerrenues At the moet recent batince sheet date, Apple's sharchader daims to the compony's acsots totaled (in mitions): a. 53.06d b. 50.849. c. $50.672 d. 5352,756 QUESTION 14 At the mest recent balunce sheot date, Apple's paid th caplad lotaled: a. 530,672 b. 504,49 c. 5052,755 d 53.068 QUESTION 15 Apple w undhatrbuled earnings at the moat rocort Bolance theet dite was (n mitons) a. 5352.755 t. 32000) ciser2 4523.046 The amount of dividends declared by Apple during the most recent reporting period was $14,793. True False QUESTION 17 Did Apple pay cash to repurchase any of its common stock shares during the most recent reporting period? a. Yes b. No QUESTION 18 Which ol Apple's financial statements is not accrual-based? a. Income statement b. Balance sheet c. Statement of shareholders' equity d. Statement of cash flows QUESTION 19 For the most recent reporting period. Apple's largest source of cash was from: 3. Investing activities b. Operating activities c. Financing activalies Apple's cash-based net income for the most recent reporting period was (in millions): a. $122,151. b. $99,803. c. $23,646. d. $394,328. Apple lne. Apple Inc. CONSOUDATED BALANCE SHEETS (In millions, exceptnumber of shares which are reflected in thousandg and par value) Apple fnc. CONSOUDATED STATEMENTS OF SHAAEHOLDEAS EOUITV CONSOUDATED STATEMENTS OF CASH FLOWS (In milions) Restricted Marketable Socurtties The Company conoiders marketable securities to be rostricted when withdrawal or general use is legally restricted. The Compeny reports restricted marketable socurities as current or non-current markotable securitice in the Consolidated Belance Sheots based on the classilication of the undertying securities. Property, Plant and Equipment Depreciation on property, plant and equipment is recognized on a straight-line basis over the estimaled useful lives of the assete. Which for buildings it the shorter of 40 years or the remaining life of the bulding: between one and five years for machinery and equipment, including manulacturing equipment; and the shorter of the lease term or useful life for leasehold improvements. Capitalized costs rolated to intemal-use software are amortized on a straight-line basis over the estimated usotul livos of the assets, which range from five to seven yoars. Depreciation and amortiation expense on property, plant and equipment was \$8.7 bilion, 50.5 billion and 59.7 billion during 20e2, 2021 and 2020 , rospectively. Derivative Instruments and Hedging Al derivative instrumente are recorded in the Consolodated Balance Sheet at fair value. The acoounting treatment for derivative gains and losoes is based on intended use and hedge designation. Guine and losses arking from amounts that are incluched in the assessment of cash flow hedpe elfectiveness are initialy deforred In acoumulated other comprehensive income/loss) ("AOCF) and subecquently rechasifed into eamingr when the heobed transaction aftects earrings, and in the same line ilem in the Consoldated Statements of Operations For options designaled as cash flow hedges, the Company exdudes Eime value from the assesament of hedon afloctoveness and recogrixee it on a straight-tine basit over the lite of the hedge in the Consoldated Statements of Operations line item to which the hodge relates Changos in the far value of amounts exoluded trom the assessment of hedge effectiveness are recognised in other. comprehenetve incomev(loss) ("OCl'). Gainite and losses arising from amounts that are included in the assossment of hair value hedge eflectiveneas are recognited in the Consoldated Statomente of Operations line lem to which the hedge relates along with oftietsing losbes and gains related to the change in value of the hedged item. For foreign exchange forward contracts designated as fair value hedgea, the Company. molubes the forward carry component from the assessment of hedge eflectiveness and rocognizee if in other income/texpense. net ('OL5 ?) on a straight-lhe basis over the Mte of the hedge. Changes in the tar value of ameuns excluded from the assesement of hedge efloctiveness are recognized in OCl Guins and lossee arising from changes in the fair values of dorivative instruments that are not deaigaled as accounting hedges. are rocogrired in the Consobdated Statements of Operations lne liems to which the denvalive ingrumanta retale The Company presents deivative assets and labdities at their gross tair values in the Consoldatod lalance Sheuts. The Flover. Fair Value Meesurements The tair values of the Conpamy's money manket tunds and certain makptabie equiy securties are based on quoled prices in active markots for identical asseth. The valuation tocthigues used to measure the tait value of the Coerpampis debe inulriments and al other financia insirumenth, which generally have countepartien with high credt catings, are based on quicted market prices or modetidiven valaatont using signticant irputs derived trom or corroborated by cbservatle maiket dada. income faxes oweded by the US. Tax Cuts and Jobs Act of 2017 (the 'Act) Leases The Comiqumicombines and acceunts tor iakse and nonlaste compronents as a anole inase componert for inases of corporaie. data periter and retail lacities. The disount rater rilaged is the Companys lease labelies are gereraly based on emtenates of Other incomert zppente), Met The followhe table shwos the detad of pust lor 2002, 2021 and 2000 (in milcra). Hole 5 - Income Taxes Provision for lncome Tases and thective Tan fate The provioun for income tanew for 2022 , 2021 and 2020 , conseted of the folkwing (n mavors). Note 7-Debt Commercial Paper and Aepurchabe Agreements The Company lasues uneecured ohort-term promissory notes (Commercial Paper') pursuant to a corrimercial poper program. The Company uses net proceeds from the commercial peper program for general corporute pumposes, including dividendh and bhare repurchasen. As of September 24, 2022 and September 25 , 2021, the Company had $10.0 billon and 56.0 billon of Commercial Paper outstanding, respectively, with maturities generally less than nine montha. The weighted-itverage interest rate of the Company's Commercial Paper was 2.31\% and 0.06% as of September 24, 2022, and September 25, 2021, respectivoly. The following table provides a summary of cash flows associated with the issuance and maturilen of Commercial Papor for 2022,2021 and 2000 (n millionsli In 2080, the Company entered into agreements to sel certain of tha marketable securities whth in promige to mpurchase the nocucities, the Company accounted lor its Alepos as collateralized borrowings. The Company ertarud irto $52 billon of Aepoe during 2020, all of which had been setiled as of Septerber 26, 20e0 Term Debt The Company has outstanding foxed-rate notes with varying maturites (colectivoly the Noted? The Noles are achior uneecurod. obligatione and interest is peyable in arrears. The following bable provides a sunmary of the Compary's twen dobt as of September 24, 2022 and September 25, 2021: curency owaph to eflectively convert these notes lo US dollar-derominazed notes